In general, the burden of a tax falls on buyers when demand is _____ than supply.

Name: In general, the burden of a tax falls on buyers when demand is _____ than supply.
Brand: Quizplus
Rating: 5.0 (50 reviews)

Question

Quizplus · Accepted Answer

When demand is more price inelastic, it means consumers are less sensitive to price changes. Therefore, if a tax is imposed, consumers are more likely to bear the burden of the tax because their demand for the product does not decrease significantly with an increase in price.

In General, the Burden of a Tax Falls on Buyers